MELI is a long-term buy due to its diversified LatAm ecosystem (e-commerce, payments, logistics) and structural growth opportunities, outweighing regional risks.
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So, with that, let's jump right into our first stock, which is going to be Marcato Libre, stock ticker Mi. This is a name that I've really liked and really started pushing back at the start of June when I published a video titled I'm buying every share I can. And in that video, I covered Marcato Libre.
This is one of those companies I think investors can easily misunderstand. People call Marcato Libre the Amazon of Latin America, and I understand the comparison. I often use it myself, but I actually think that underells the business because they often only speak of the e-commerce side of things when it comes to Amazon.
It's increasingly Amazon, plus a PayPal-like company, plus a bank and a logistics infrastructure company, all for Latin America. And this region has intrigued even the likes of Amazon who's moving into it.
You have Marcato Libre, the e-commerce marketplace. Marcato Pago, the fintech ecosystem, credit, payments, advertising, logistics, and each part strengthens the others. Someone buys something from Marcato Libre.
They pay through Marcato Pago. The merchant uses Marcato's logistics network. The merchant advertises through Marcato ads. Potentially, they use Marcato credit. That's an ecosystem.
So, why the interest in Latin America for me? Well, for starters, the structural opportunity remains enormous. E-commerce penetration still has plenty of room for growth. Digital payments has room for growth.
Financial inclusion room for growth. Online advertising room for growth. And Marcato Libre has already built tremendous scale across the region and it's expanding. That's exactly what I look for in a compounder.
But what I also like, it diversifies me outside of the US. a great business operating inside a market that can continue expanding for years to come.
Jumping over to my proprietary stock investors edge website available to all subscribers inside my community, you can see the company receives a very strong edge score of 82, exceptionally strong on future growth and financial health in particular.
The average 12-month price target for analysts is 2256, implying 15% upside from current levels.
So that's all great, but it doesn't come without risk. Currency volatility matters. Latin America economies can be unpredictable. Competition remains intense. But when I look out over the next 5 plus years, I see multiple ways this company can become significantly larger. And that's why Melly is on this month's list.
And right now my list is Melly, it gives me e-commerce, fintech and Latin America exposure.
What this channel has said about $MELI
Mark Roussin, CPA has only this one call on this stock.